TFU | Feb. 11-16

Twenty-two state AGs challenged the CFPB’s proposed fintech sandbox; the Senate Banking Committee is set to examine financial data collection; JPMorgan Chase introduced its own dollar-backed cryptocurrency; President Trump signed an EO setting aside federal funds for AI projects; IBM won a $700M five-year technology deal with Banco Santander; Ant confirmed its acquisition of WorldFirst; and U.K. challenger bank Starling raised £75M in Series C funding.

In the News

State AGs challenge CFPB’s fintech sandbox proposal. 22 Democratic state attorneys general (AGs) sent a letter to the Consumer Financial Protection Bureau (CFPB) saying it has “no authority” to create a fintech sandbox, which they argue would create “sweeping immunity [from enforcement] absent formal rulemaking.” The CFPB circulated its proposal for a fintech sandbox in late December.

Apple hints at potential blockchain moves. The tech giant’s recent SEC filing contained details about its exposure to blockchain, including its involvement in drafting the “Blockchain Guidelines” for an initiative of the Responsible Business Alliance. The filing also notes that Apple chaired the RBA Board and participated in various internal working groups and committees, including “the blockchain team.”

Ant Financial confirms WorldFirst takeover. The Chinese tech giant confirmed its deal to acquire U.K.-based currency transfer operator WorldFirst. WorldFirst shuttered its US operations to ward off any regulatory objections in advance of the alleged $700m acquisition. Founded in 2004 by former Citi bankers, WorldFirst processes over $15 billion a year and employs about 600 people worldwide.

Starling Bank raises £75M. The U.K. challenger bank raised £75 million in Series C funding, led by Merian Global Investors and an additional investment from sole existing investor Harald McPike. Starling plans to use the funding for its international expansion plans and to support its ambition to “use our technology to build a next-generation global, digital banking platform.”